Money-laundering bail restraint applies where prima facie material shows concealment and projection of proceeds of crime.

A prosecution under the Prevention of Money-Laundering Act, 2002 involved alleged diversion of compensation amounts and routing of funds through accounts of advocates and associates. Section 3 was treated as creating an independent offence covering concealment, possession, acquisition, use and projection of proceeds of crime as untainted property. Section 45 imposed a stringent bail restraint, requiring reasonable grounds to believe the accused is not guilty and is not likely to reoffend on bail. On the prima facie material, the Court found involvement in laundering activity and held that the bail threshold was not met; bail was refused.

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Issues: Whether bail should be granted in a prosecution under the Prevention of Money-Laundering Act, 2002 in view of the material indicating involvement in concealment, possession, use and projection of proceeds of crime as untainted property.

Analysis: The allegations and investigative material showed that the petitioner was prima facie connected with the diversion of compensation amounts credited to claimants, with transfers and cash withdrawals allegedly routed through accounts of advocates and associates. Section 3 of the Prevention of Money-Laundering Act, 2002 was applied as creating an independent offence covering any process or activity connected with proceeds of crime, including concealment, possession, acquisition, use, projection as untainted property, or claiming as untainted property. Section 45 of the Prevention of Money-Laundering Act, 2002 imposed the statutory restraint on bail, requiring the Court to be satisfied that there were reasonable grounds for believing that the accused was not guilty and was not likely to commit any offence while on bail. On the prima facie material, the Court found that the petitioner appeared involved in the alleged laundering activity and that the rigour of the bail provision was not satisfied.

Conclusion: Bail was refused and the prayer for release was rejected.

Ratio Decidendi: In a money-laundering prosecution, bail cannot be granted unless the Court is satisfied, on reasonable grounds, that the accused is not guilty and is not likely to commit any offence while on bail; prima facie material showing involvement in dealing with proceeds of crime justifies of bail.

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